Ecuador’s National Chamber of Aquaculture (CNA) recently reported a significant increase in shrimp exports, reaching 1.11 million tons in the first 11 months of 2023. This marks a commendable 14% surge compared to the same period last year. However, despite the impressive volume, the export value only amounted to $370 million.

Ecuador primarily exports shrimp to China, constituting 59% of its market share. However, the gloomy economic situation in China, coupled with a weakening yuan, has led to a decline in shrimp imports. The added pressure of frozen storage costs amidst low demand further complicates matters for Chinese importers.

In the US, which accounts for 17% of Ecuador’s shrimp exports, rising interest rates and soaring energy costs have triggered inflation, resulting in a 12% decrease in seafood consumption. These unexpected market challenges stand in stark contrast to the optimistic outlook shared by industry leaders at the beginning of 2023.

In January 2023, Mr. Sandro Coglitore, CEO of Omarsa, one of Ecuador’s largest shrimp production companies, expressed optimism about the Chinese market’s potential for double-digit growth after the removal of Covid-19 restrictions. However, market fluctuations proved unpredictable. Despite early optimism, the seafood industry faced escalating costs in production, processing, and trade.

Ecuador witnessed a significant increase in shrimp raw material costs, rising by $0.28/pound compared to 2022. Additionally, the country had to allocate $80 million/year to ensure security for production activities and protect assets. The rise in criminal cases related to the shrimp industry, with 77 cases reported in the past year, adversely affected the liquidity of the Ecuadorian shrimp industry, decreasing by $0.98/pound and putting a strain on profits.

In response to the challenging scenario, the Ecuadorian government is actively engaged in efforts to combat crime and reduce production costs. The CNA, representing the shrimp industry, has committed to collaborating with the public sector to find solutions that foster the development of the aquaculture industry. Recognizing its significance, both economically and socially, the industry provides 290,000 direct and indirect jobs, contributing to the stable socio-economic development of the country.